APS wants another rate hike now? I don’t think so
Arizona Public Service continues marching toward yet another money grab.
Neither rain nor snow nor a global pandemic that has devastated ... no wait, that’s the Post Office.
But the point is the same.
Now is not the time for APS to be reaching out to take another $184 million from its customers, many of whom are now unemployed and wondering how they will pay next month’s rent.
Meanwhile, the Arizona Corporation Commission is inviting the public to comment on APS’ latest proposal to boost its electricity rates.
Well, here’s my comment: HAVE YOU PEOPLE LOST YOUR MINDS?
APS already charges 21% more per
kilowatt hour than the Salt River Project, according to the U.S. Energy Information Administration.
The monopoly utility’s profits soared after it spent nearly $15 million – most of it secretly – to stack the regulatory commission that sets its rates in 2014 and 2016.
The commission, just coincidentally I’m sure, then rubber-stamped a $95 million rate increase in 2017.
That rate hike was billed as an average 4.54% increase, but a third of APS’ 1.2 million residential customers were hit with bills that were double and triple that.
APS went on to soak us for $28.4 million more than it was allowed to collect in 2018, according to an audit commissioned by the Corporation Commission.
Now the utility wants to raise rates again? This time, by an average of 5.45%?
I don’t think so.
And neither do hundreds of people who have weighed in with comments that the commissioners are (hopefully) reading:
“I run short on my Disabled income every month because of the high APS bills!” wrote Cindy Brown of Phoenix. “How will I survive with another rate increase? I don’t get raises.”
“This is ridiculous. We leave these decisions to a board that was influenced by APS to approve the rate hikes,” wrote Jason Bracht of Youngtown. “They are going to allow a public utility that has already been caught making more profit than allowed to confirm another rate hike.”
“APS has given NO valid reason for this rate hike,” wrote Laura Masters of Phoenix. “Electric services have become unaffordable. People have died because APS shut off their power.”
“The last rate hike was unjustified and now they’re going for more. Ridiculous,” wrote Kelea Nevis of Paulden. “Let’s get some competition in here against the greedy APS monopoly.”
“If there was a way to choose a provider, I would dump APS immediately,” wrote Gayle Quinte of Phoenix.
Which is, of course, why APS executives get the vapors of the mere mention of deregulation, something they’ve fought for years.
As for the rate hike, APS has said it wants to increase its authorized ROE (return on equity) to 10.15%, up from the authorized 10%. This, because of the “risk profile” of APS as an investment when compared with similar utilities.
“That’s what we need to be able to attract investment at the same level as that peer group,” Leland Snook, APS director of rates and rate strategy, told The Arizona Republic’s Ryan Randazzo last fall, when APS filed its rate request.
APS officials said the request includes some dandy ideas that would benefit customers, such as eliminating the charge to connect to the utility and adding a “super off-peak time-of-use window” that would bring down rates on winter mornings.
Here, the state where the sun blazes most of the year.
You know what else would benefit customers? How about listening to them?
The Corporation Commission is taking public comment. You can send yours to commission, care of the Consumer Services Section, 1200 W. Washington St., Phoenix, 85007. Your letter should reference Docket No. E-01345A-190236.
You can also comment online by going to www.azcc.gov, using “Cases and Open Meetings” and “Make a Public Comment in a Docket.”
But do it soon.
The Corporation Commission hasn’t yet set a date to consider whether to boost APS’ rates.
Me? I’m thinking regulators should vote before the Nov. 3 election, when three of the five commission seats will be up for grabs.
I just wouldn’t plan on that. And I wouldn’t wait until then to let our regulators know that this time, we are watching.